Here is why prices are going to climb in 2025 in Fort Worth

Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Fort Worth real estate spreadsheet template.

Thinking of buying in Fort Worth? Get our financial spreadsheet tailored to this specific market.

Expecting a decrease in Fort Worth prices in 2025? Think again.

Even with changing patterns, Fort Worth's market is strong, with high demand and not enough supply pushing prices up.

Let's explore why prices in this city are set to rise in 2025.

This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.

1) Fort Worth boasts an impressive livability score of 80, highlighting its excellent quality of life

Signal strength: strong

The livability score of 80 in Fort Worth is considered excellent because it reflects a high quality of life, which is a key factor in attracting new residents and investors. This score is supported by Fort Worth's strong sense of community, where residents often engage in local events and support neighborhood initiatives, creating a welcoming environment.

Additionally, Fort Worth boasts an impressive cultural scene with numerous museums, theaters, and music venues that cater to diverse tastes, making it an attractive place for people who value cultural experiences. The city's affordable cost of living compared to other major cities in Texas also contributes to its high livability score, as it allows residents to enjoy a comfortable lifestyle without breaking the bank.

These factors combined suggest that housing demand is likely to increase as more people seek to move to Fort Worth, potentially driving up housing prices in 2025. However, if the livability score were to drop below 70 due to negative changes in these key characteristics, it might indicate a less favorable outlook for housing prices.

Source: AreaVibes

2) In Fort Worth, there are only about "0.38 homes" for each person, which is quite limited

Signal strength: strong

In Fort Worth, the fact that there is around 0.38 home per inhabitant indicates a limited housing supply relative to the population.

This low ratio suggests that housing demand is likely to exceed supply, which often leads to rising prices. Fort Worth is experiencing a surge in popularity due to its vibrant cultural scene and economic opportunities, attracting more residents.

As more people move to the area, the existing housing stock becomes more competitive, driving up prices. A local factor contributing to this trend is the expansion of major employers in the region, which draws in a workforce seeking nearby housing.

If the ratio were to increase to 0.5 home per inhabitant, it might indicate a more balanced market, potentially stabilizing prices.

Source: USCensus

3) With an "8.5%" vacancy rate, Fort Worth's market is highly occupied and competitive

Signal strength: moderate

The vacancy rate in Fort Worth is 8.5%, which is considered very low, indicating that most properties are occupied. This low vacancy rate suggests a high demand for housing in the area, as more people are looking to live there than there are available homes. When demand is high and supply is limited, it often leads to increased housing prices as buyers compete for the few available properties.

In such a competitive market, well-maintained single-family homes in desirable neighborhoods are easily rented. Specifically, properties in areas like the Cultural District, known for their amenities and proximity to attractions, tend to attract renters quickly. These homes are often in good condition and offer modern amenities, making them appealing to potential tenants.

Investors looking at Fort Worth should consider these factors, as they indicate a potential for property value appreciation in the coming years. However, if the vacancy rate were to rise significantly, say to above 12%, it might suggest an oversupply of housing, which could put downward pressure on prices.

Source: NeighborhoodScout

4) In the past decade, Fort Worth home prices have consistently risen by an average of 8.8% each year

Signal strength: moderate

The fact that home prices in Fort Worth have appreciated at an average rate of 8.8% over the last decade is noteworthy. This historical trend suggests that there has been a consistent demand and growth in home values in the area.

While this positive 10-year average indicates a history of favorable conditions for price increases, it's important to remember that past performance doesn't guarantee future results. However, such a trend can be a good indicator for potential investors looking at the market.

It shows that the market has been resilient and attractive to buyers over time, which can be encouraging for those considering investing in real estate. Yet, if the appreciation rate were to drop significantly, say below 3% over a similar period, it might suggest a different outlook.

Source: NeighborhoodScout

5) Two major websites confidently predict that home prices in Fort Worth will rise in 2025

Signal strength: moderate

When considering the future of the Fort Worth housing market, it's noteworthy that two major websites are predicting positive growth for home prices in 2025. Among these forecasts, Realtor is the most optimistic with an expected increase of 9.20%, followed by Redfin's forecast of a 4% rise in home prices.

In contrast, Zillow anticipates a slight decline of -0.50%, highlighting a significant gap between the predictions. While these forecasts provide valuable insights, it's crucial to remember that they should be viewed with caution and not as definitive outcomes.

We will also rely on strong, reliable, and current data to make a well-informed decision about investing in this market. If the majority of forecasts were to predict a decline, it would suggest a different trend.

Source: ZillowForecasts

6) Fort Worth's median home price is 32% lower than the national average

Signal strength: minimal

The fact that Fort Worth still has a median home price 32% below the national average suggests that there is room for growth in the housing market. This gap indicates that Fort Worth is an attractive option for potential buyers and investors, as they can get more value for their money compared to other cities.

In Fort Worth, the most expensive properties are likely to be luxury homes located in areas like Westover Hills, where affluent neighborhoods and high-end amenities drive up prices. On the other hand, the cheapest properties are probably small, older homes in neighborhoods such as Stop Six, where prices remain low due to less demand and fewer amenities.

As the city continues to grow and develop, the demand for housing is expected to increase, leading to a rise in prices. This is especially true if Fort Worth continues to maintain its affordability compared to the national average, attracting more people to move there.

If the median home price in Fort Worth were to rise above the national average, it might suggest that the market has reached its peak, and the potential for further price increases could be limited.

Source: Zillow

7) A local in Fort Worth could afford a house in about 3.9 years, which is reasonable

Signal strength: minimal

In Fort Worth, it currently takes around 3.9 years for a local to save enough to buy a house. This is based on the median household income of approximately $77,082 and the median home price of about $297,883.

When the time it takes to buy a house is relatively short, it suggests that homes are more affordable for locals. This affordability can lead to increased demand, which often results in rising housing prices over time.

As demand increases, potential investors might see this as a sign that housing prices could go up in the future. However, if it took significantly longer, say over 6 years for a local to afford a home, it might indicate that prices are too high and could stabilize or decrease.

Source: USCensus

8) Fort Worth boasts a strong employment rate of 66.4%

Signal strength: minimal

The employment rate in Fort Worth is at 66.4%, which is considered high compared to the national average in the United States.

This high employment rate suggests that more people have stable incomes, which can lead to increased demand for housing as people look to buy homes. The major employment sectors in Fort Worth include aerospace and defense, transportation and logistics, and healthcare, which are robust and provide numerous job opportunities.

Companies like Lockheed Martin and American Airlines are significant employers in the area, contributing to the strong job market. With more people employed, there is a greater likelihood that housing prices will rise in 2025 as demand increases.

If the employment rate were to drop below 60%, it might indicate a weakening job market, which could lead to a decrease in housing demand and potentially lower housing prices.

Source: USCensus

Don't lose money on your next property in Fort Worth!

Unprepared first-time buyers often end up losing money. Invest only after reviewing all the performance metrics. Get our spreadsheet tailored to Fort Worth.

DOWNLOAD

9) In Fort Worth, about 20% of homes sell for more than their "listing price."

Signal strength: minimal

In Fort Worth, around 20% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it suggests that competition among buyers is intense and they are eager to secure a property.

This kind of market behavior often leads to an upward pressure on housing prices because sellers recognize the high demand and adjust their prices accordingly. As more buyers compete for limited inventory, the likelihood of prices increasing becomes more pronounced.

For someone considering investing in real estate, this trend is a positive sign that property values may continue to rise in the near future. However, if the percentage of sales closing above the listing price were to drop significantly, say below 5% of sales closing above the listing price, it might indicate a cooling market.

Source: Zillow

So, are Fort Worth's home prices set to rise in 2025? Absolutely